Loans that address the financial requirements of Small and Medium Enterprise are SME business loans. SME and MSME sectors provide substantial employment opportunities, primarily through industrialisation in rural and backward areas. It is also making important contributions to the nation’s GDP.

Generally SME loan are available under government schemes in conjunction with many banks and NBFCs. You can apply online by filling an online application form and submitting necessary documents, like:

1. Identity Proof: Aadhaar Card, Driving License, PAN Card, Passport, Voter’s ID, etc.
2. Address Proof: Aadhar Card, Driving License, Passport, Voter’s ID, etc.
3. Proof of Business: Business Entity Proof, Incorporation Certificate, Partnership Deed, Shops and Establishment Certificate, etc.
4. PAN Card: of the business entity and all partners/promotors.
5. Financials documents: Audited financial statements, Balance Sheet, Profit and loss statement, Tax audit reports and VAT returns, etc., for the last three years.
6. Bank Statements: For the previous six months.

To avail SME business loan, you should be a proprietor, a self-employed, or a partnership or private limited company. You should be in the age group of 21 to 65 years, the minimum annual income of your business should be Rs. 1.5 lakhs and you should be in this business for at least two years.

Additional Read: Startup Loans v/s SME Loans- Types of Business Loan